The Rediff Business Interview/S M Krishna

'Karnataka will pull out all stops to attract investment'

With the south-west monsoons arriving on schedule in the state, fresh winds of change are blowing across Karnataka, the land of coffee and computer chips.

Somanhalli Mallaiah Krishna, the 69-year-old infotech-savvy Chief Minister of Karnataka could not have asked for a better setting to kick-start his government's month-long Global Investors' Meet, or GIM, to attract foreign and domestic investments to his state. The meet also restored the reputation of Bangalore as the most-favoured destination, or MFD, of global and domestic investors.

Having set the ball rolling within a month of taking over the reins of the state last winter, Krishna got his hand-picked bureaucrats cracking. He organised a mega event on a global scale with a view to reviving the sagging fortunes of his state.

In a bid make the show a resounding success, Krishna took great initiative and led his team to Delhi and Bombay to anchor road shows,

a la Chandrababu Naidu, and invite the bigwigs of corporate India to the main event. Besides the captains of industry, Krishna managed to get the Union Finance Minister Yashwant Sinha to fly from the US to Bangalore to inaugurate the prestigious meet.

Armed with a thumping mandate from the people, Krishna pulled all stops to showcase Karnataka to the outside world as a promising land with plenty of natural and human resources beckoning investors.

Krishna was out to resurrect the image of a battered state and check the flight of capital from Bangalore to places like Hyderabad, Madras and Pune, where better infrastructure facilities had been too tempting for investors to resist.

An exuberant Krishna reveals his ambitious plans of putting Karnataka on the fast track in a tete-a-tete with

Fakir Chand.

What made you to organise this Global Investors' Meet?

The urgency of making up for the lost time over the last couple of years when the state slipped from its eminent position of being a favourite destination of investors.

A Centre of Monitoring Indian Economy, or CMIE, survey revealed that Karnataka was lagging behind even Orissa in the race to attract investments, be it foreign or domestic. With neighbouring states like Tamil Nadu and Andhra Pradesh catching up with Maharashtra and Gujarat in the ranks, I cannot sit back and watch passively as Karnataka slips behind.

Aware of the reasons for such a state of affairs, my government decided to take measures to show that Karnataka offers tremendous opportunities for investors with its abundant natural and human resources, excellent law and order situation, cordial labour relations, and an investor-friendly administration.

Soon after I assumed office, we had organised the second edition of the 'BangaloreIT.com '99' in November last to demonstrate the strength of the city in the field of knowledge-based industry and reaffirm the eminence of Bangalore as the IT capital of India.

The active participation of leading IT companies, including many multinationals at the event convinced me that given the right kind of environment and logistical support, existing companies were willing to not only stay put, but also send the right signals to prospective investors.

The feedback from the IT show and subsequent developments had given me enough food for thought to think on the lines of organising a global investors' meet. This would showcase the benefits of coming to Karnataka, especially in infrastructure where the state is in the a big need of massive funds: we lag behind in power generation, good roads/ highways, airports and modern communications network.

At the World Economic Forum at Davos early this year, I was astounded at the kind of response I got from global investors -- including Fortune 500 companies -- on what Karnataka has to offer and how it could attract funds for development.

Bangalore's fame as the Silicon Valley of the East and its enormous potential in becoming a world-class centre for knowledge-industry have convinced me that its growth could be further boosted by offering a platform to interact with prospective investors and know their requirements.

What do Karnataka, and Bangalore, have to offer to these investors?

Everything they want or look for. A pro-active government, investor-friendly climate, safety and security in terms of law and order, good labour relations, highly skilled professionals, and abundant natural resources in diverse areas.

More than anything else, Bangalore has a weather that is unique. It is already famous for its sobriquet: the 'air-conditioned city'. Other cities may boast of many things, but none can equal the salubrious climate of the garden city round the year. The atmosphere in other parts of the state is equally friendly towards the investor.

These apart, the lasting reputation of Bangalore as also being the space city with finest educational, research and defence institutions gives a measure of its intellectual and scientific capital. Even in higher education, the state is on the forefront of generating a huge pool of shining talent.

What about the infrastructure in the city and the state?

Yes, that is an area of concern for us. It is on the top of my agenda. Lack of any notable progress on that front during the last few years has put the clock back on the development front. While inadequate power, bad roads, and poor transportation are the burden of the state, tardy progress in other areas of infrastructure such as modern communication networks, broad highways, and better airports -- which fall under the central government's jurisdiction -- have aggravated the situation, leading to the present state.

Be that as it may, we have lost neither heart nor hope. In fact, the Congress party has won the mandate of the people on the promise of reviving the fortunes of the state and restoring its place that duly belongs to it, i.e., in being the most progressive state. We are committed to the socio-economic development of Karnataka to generating jobs, providing better amenities, facilitating growth, and improving the quality of life in the state.

Taking advantage of the liberalised environment and deregulation, Karnataka has thrown its doors open to all investors -- foreign or domestic -- to come to Karnataka and avail of the myriad incentives and facilities we are offering.